Netflix CEO Heads to White House as Paramount Raises Warner Bros. Bid to $31
Netflix Co-CEO Ted Sarandos will meet White House officials after Paramount raised its cash bid for Warner Bros. Discovery to $31, with a $7 billion regulatory termination fee and $2.8 billion breakup payment. Warner Bros.’ board will now evaluate Paramount’s proposal, giving Netflix four business days to improve its offer.
1. White House Meeting on Acquisition Bid
Ted Sarandos is slated to meet White House officials to discuss Netflix’s bid for Warner Bros. Discovery, likely addressing political scrutiny and calls from state attorneys general for Justice Department review. Sarandos has downplayed political pressure, emphasizing the deal’s business nature despite demands to remove a board member.
2. Paramount Increases Offer to $31 Per Share
Paramount Skydance boosted its all-cash offer for Warner Bros. Discovery from $30 to $31 per share, sweetened by a $7 billion regulatory termination fee payable by Paramount and a $2.8 billion breakup payment Warner Bros. would owe Netflix if it exits its current pact.
3. Board Evaluation and Matching Rights
Warner Bros. Discovery’s board is assessing whether Paramount’s revised bid qualifies as a superior proposal. If approved, Netflix will have four business days to counter with an equal or better offer under existing deal terms.
4. Financing and Credit Review
Paramount plans to raise $47 billion through equity issuance at $16.02 per share to fund the transaction, while Moody’s has placed the company’s parent on review for downgrade due to increased leverage and debt complexity.